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Finance forecast shows revenue shortfall; board begins discussion of local 1% sales-tax option
Summary
The board heard a May financial forecast showing a projected revenue shortfall versus budget and discussed a state-level provision enabling a 1% local sales-tax referendum; staff explained appropriation practices and an ADM drop that reduced state funding.
Roanoke City School Board members received the division’s monthly financial forecast through May during the July 14 meeting and discussed local options for additional revenue.
Miss Caldwell presented the forecast, reporting that general-fund revenue was forecast to be $6,700,000 below budget through the end of May while expenditures were forecast about $4,400,000 below budget for the same period. She said the division’s general-fund appropriation for the period was $275,000,000 and described capital-fund balances and the status of the Preston Park Elementary project.
Board members asked staff why a revenue shortfall could coexist with unused appropriated funds. Staff explained that appropriated amounts—set by locality and council—are not always equal to the budget projections and may be rounded up to ensure the division does not exceed its appropriation. Staff also identified a midyear drop in average daily membership (ADM), which reduced state funding and contributed to revenue variance; the transcript records ADM falling from roughly 12,900.84 to about 12,006.62 (reported by staff during the meeting).
In ongoing business, the board discussed language in the state budget that would allow localities to place a 1% sales-tax referendum before voters. The chair urged the board to begin internal work to define priorities and to coordinate with city council and community stakeholders before any referendum is proposed. Staff cautioned the board that timing and long-term availability of such authority depend on budget language and biennial processes.
What happens next: staff will continue monthly forecasting and provide additional detail as year-end adjustments and audit entries are completed; the board will consider outreach and planning if a local sales-tax referendum proceeds to council and voters.
